Japan Focus of the Week

Goldman Sachs forecasts a slowdown in Tokyo CPI and a third consecutive monthly decline in industrial production for Japan. They anticipate the Bank of Japan will maintain its current JGB purchase reduction plan through March 2027.

Key Takeaways

• 1.May Tokyo new core CPI is forecast to slow to +1.8% yoy, driven by continued deceleration in food prices.
• 2.April industrial production is expected to decline by -1.2% mom, marking the third consecutive month of decline.
• 3.The Bank of Japan is expected to maintain its current JGB purchase reduction plan during its June interim assessment.

Table of Contents

• Focus Next Week
• This Week's Main Research
• This Week's Data and Events
• Upcoming Economic Indicators and Events
• Research Recap
• Exploring the BOJ's Future JGB Purchase Path
• This Week's Recap: Economic Events and Data
• Preliminary Q1 Real GDP +2.1% QoQ Annualized, Above Market Forecast
• April National CPI: New Core CPI Prints at +1.9%, Well Below Market Forecast, Amid Widespread Deceleration and Policy Factors
• April Trade: Crude Oil Import Unit Price Surges while Import Volume Plunges. Stable LNG Import Price
• January-March Core Machinery Orders Increase for Second Straight Quarter; Modest Increase Expected for April-June
• Reference: Japan One Month Economic Calendar

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